Other Shortages...

[Claire Oh Nette]

3. Tariffs and Pandemic

The previous administration's mistaken notion that tariffs were a winning strategy in a trade war with China triggered a 25% price hike over a year ago. No one commented on the price hikes as they were drowned out by Coronavirus news.

The slowdown reduced demand, but price hikes offset supply glut. Now that the economy is opening up and demand outstrips supply, price increases, or quality falls to maintain price. When Tariff pass throughs to the consumer meet increased demand without increased supply, we get increased costs across the board.

Shutdown affected everything. Bringing manufacturing and supplies up to pre pandemic levels takes more time than laying workers off does. Biden's four months in to an administration cleaning up the messes left by a rudderless ship of state running aground over and over again.